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Knowledge Management in the Business Sector Al Berg Practice Director/Collaborative Computing AMC Computer Corporation New York City, NY USA

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Presentation on theme: "Knowledge Management in the Business Sector Al Berg Practice Director/Collaborative Computing AMC Computer Corporation New York City, NY USA"— Presentation transcript:

1 Knowledge Management in the Business Sector Al Berg Practice Director/Collaborative Computing AMC Computer Corporation New York City, NY USA

2 Businesspeople know… Knowledge has Value! z“If HP knew what HP knows, we would be three times as profitable.” -- Lew Platt, CEO of Hewlett Packard

3 KM is Job One z According to the American Management Association (12/98), “Knowledge-Based Management” is the number one ranked IT concern of executives worldwide.

4 Business KM Trailblazers zArthur Andersen zChevron zDow Chemical zHughes Space & Communications zKaiser Permanente zPrice Waterhouse z Sequent Systems z Scandia AFS z Texas Instruments z USAA according to the American Productivity Center

5 KM Saves Real Money z Dow Chemical’s initial Intellectual Property management projects saved $40 million z Chevron’s KM efforts led to $170 million in savings z TI shared information on increasing semiconductor yields - and saved $500 million

6 The CKO zChief Knowledge Officer yBuilds a knowledge culture yBuilds the needed infrastructure yMakes it all pay off! z Only 14.9% of companies responding to a recent survey have a “Chief Knowledge Officer”

7 Top Management Involvement zAccording to the same KM World survey… y59.5% of respondents noted that KM initiatives were driven by top management y40.5% did not see initiatives as driven by corporate management zSuccessful KM adopters have top management as a driver

8 Cultural issues zThe most difficult part of implementing KM in business (and other) settings: “It must be considered that there is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things.” Niccolo Machiavelli - The Prince - 1513

9 Information Overload - A major driver of KM z The average businessperson in the US, Canada and UK receives approximately 190 messages per day according to a May 1998 survey by Pitney Bowes

10 Three Kinds of KM Projects... z Creation of knowledge repositories z Improving access to knowledge z Building the “knowledge culture”

11 Knowledge Repositories zExternal knowledge yCompetitor intelligence zStructured internal knowledge yReports, databases zInformal internal knowledge yDiscussions

12 Repositories: External zCompetitor and client intelligence yCompetitor sales information yIndustry/competitor news yAnalysis of products developed and patents filed by competitors

13 External Repositories at AMC Computer Corporation z Access to external news sources for client, vendor and customer news z Links to competitor web sites z Demos: yThe AMC news database yInquisit

14 Repositories: Structured/Internal zDocument management yCapture knowledge as it is created yLeverage existing documents generated in course of business by making them easily accessible yVery common in the legal profession since its data is already document based

15 Repositories: Structured/Internal z Data Warehousing y“Slice and dice” access to data already being collected throughout an organization - accounting, customer service, etc. yNew ways of looking at & analyzing existing data yData ----> Information

16 Repositories: Informal/Internal zHewlett Packard’s “Trader’s Training Post” yLinks trainers and educators throughout HP world wide using Lotus Notes yCaptures tips, tricks, insights and experiences and makes them globally accessible yInformal discussion database

17 Improving Access to Knowledge z“Yellow Pages” which connect information consumers with information sources zCodifying the “map” of knowledge in the organization

18 Microsoft’s SPUD zSkills Planning Und Development zMissions: yImprove matching of employees to jobs and teams yPlan for future employee skills development

19 How SPUD Works zEach Information Technology job at Microsoft is rated by a manager in terms of the 40 - 60 knowledge competencies needed to perform it zEach worker’s competencies are evaluated by him/herself, their supervisor and co- workers

20 Kinds of Knowledge z Foundation knowledge (entry level) z Unique knowledge needed for a job/task z Global knowledge for a particular function/organization z Universal knowledge for the company

21 SPUD Skill Categories zWithin each knowledge type, workers can possess… yExplicit competencies in specific tools and methods yImplicit competencies such as leadership, abstract reasoning

22 SPUD Skill Levels z Competencies can be categorized as… yBasic knowledge yWorking knowledge yLeadership yExpertise

23 SPUD allows... zManagers to find the workers with the skills needed for a particular task/project zWorkers to find assistance on specialized tasks zWorkers to determine what type of training they need to advance their careers

24 Improving Access to Knowledge z Knowledge may exist in the organization - but may be difficult to find z KM tools can be used to make knowledge available to new internal markets

25 Case in Point: Chevron zBest Practice Sharing Sharing information on the best, most profitable ways to do business zKnowledge Sharing Conferences zIntranet

26 Chevron Initiatives zBenchmarking costs for oil/gas drilling and using that information to predict and reduce future costs zDesignation of “process masters” whose job it is to share knowledge z Looking at competitors’ best practices - as well as those from outside the energy industry

27 The Result z30 percent productivity gain z50 percent safety gain z$2 billion in cost reduction in the 1990s

28 Creating a Knowledge Environment z This is the hardest part for many companies z Traditional business practices may not reward information sharing - even in the same company!

29 Leveraging What Is Already There zDow Chemical owned 29,000 patents - and did not know what they contained! zKM helped them... yextract “lost knowledge” ysell patents that were not being used yabandon patents that were obsolete zBottom line: US$4 million in savings

30 Nine Keys to KM Success zKnowledge friendly culture zTechnical/organizational infrastructure zSenior management support zLinks to economic benefits/success

31 Nine Keys to KM success zProcess perspective zClarity of vision and language zPowerful incentives zKM structure zMultiple channels for knowledge xfer

32 Microsoft and Knowledge Management z Microsoft Exchange z Internet Information Server z Databases

33 KM Demo from Lotus Development and IBM z This 9 minute “movie” shows IBM/Lotus Development’s vision for Knowledge Management z Scenario: a new employee’s first day on the job at a biotechnology firm...

34 “The Book” on KM in Business zWorking Knowledge: How Organizations Manage What They Know Thomas H. Davenport Laurence Prusack Harvard Business School Press

35 The “Other Book” on KM in Business z If Only We Knew What We Know : The Transfer of Internal Knowledge and Best Practice Carla O’Dell Free Press

36 Knowledge Management on the Web z Knowledge Management Magazine z Knowledge Inc. z American Productivity & Quality Center

37 Thank You! Al Berg Practice Director/Collaborative Computing AMC Computer Corporation 129 West 27th Street New York City, NY 10001 Telephone+1-212-620-0700, extension 1243 Facsimile+1-212-656-1785

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